Small Irish Hospitality employers need significant supports to survive this Winter
Increase of VAT rate to 13.5% next March a blow for Tourism Recovery & the Consumer
The Restaurants Association of Ireland have said that today’s Budget 2023 announcement has fallen short and does not go far enough to protect small Irish Hospitality employers as input costs rise significantly.
Adrian Cummins, Chief Executive of the Restaurants Association of Ireland said,
“Whilst the announcement of the Temporary Business Energy Support Scheme (TBESS) to support SMEs is welcome, covering 40% of the increase in electricity or gas bills, up to a maximum of €10,000 per month per business, it does not go far enough. The devil will be in the detail on this and we are calling for Revenue to open and administer the Scheme immediately – some businesses are already struggling to pay the bills coming in through their doors.
Input costs continue to rise, including food costs and energy consumption will only increase during winter months. The 9% VAT rate ending in February of next year will only increase costs for consumers and raises concern about Ireland’s competitiveness compared to our EU counterparts.
Although the supports offered in today’s Budget are welcomed, there are still some long hard months ahead. This can only be the first step in a package of measures over the coming winter months and we look forward to meeting and collaborating with Government Departments in the coming weeks for solutions on how best to support the most vulnerable businesses and employers in Irish Hospitality”